Suppose a Firm Has Decided to Break Its Departments Down

Multiple Choice

Suppose a firm has decided to break its departments down into smaller units. While this likely will help with __________ issues, it raises the possibility that poor decisions will result due to __________.

A) economies of scope; suboptimization
B) economies of scale; risk aversion
C) span of control; suboptimization
D) economies of scope; risk aversion
E) economies of scale; economies of scope